Wow a 14" monitor at 1024X768... is that an old CRT monitor?
Of course you are at a disadvantage in a dogfight. To be honest, us with bigger monitors don't really see MORE than people with smaller monitors see... but what we do see is much more detail in what we DO see on the screen. This is not about eye candy so much, it's about making out a plane way off in the distance and seeing it in enough detail to determine which way it is facing, how fast it is going, and perhaps even get an idea as to what kind of plane it is. What would be just a little 'blob' on your screen will be a fuselage with wings and engines on a bigger monitor (with a higher resolution).
Have you read the Aces High graphics guide? If not click
HERE.. it's a good read.
Anyway, the question is if your video card will handle a higher resolution? If you are struggling to maintain a decent level of performance at 1024X768, then you might really have problems running 1920X1080 as it has almost three times the number of pixels to draw.